The Heron's Nest: Why taxes are still going up despite fiscal cliff deal

By PHIL HERON,

Wednesday, January 2, 2013

Now that you've stopped cursing Congress and their dawdling over the fiscal cliff, we bring you this bit of sobering news.

Taxes are still going up.

It's true that the deal finally hammered out by Congress and passed by the House late Tuesday night does keep the tax cuts put in place during the Bush Administration. In fact, it makes those cuts permanent.

That's the good news. The bad news is that taxes on the whole are still going up. That means that starting this week, you will see less money in the take-home portion of your paycheck.

Why is that? Social Security. The fiscal cliff deal did not keep the temporary reductions in Social Security taxes from expiring. Those rates were lowered by 2 percentage points for most taxpayers in 2012. The increase will cost most workers with an annual income of $50,000 abuot $1,000 a year.

Andy Reid is out (although he might be in as the head coach of the Arizona Cardinals by the end of the week).

Howie Roseman is in. Control, that is.

During his Monday press conference to announce the end of the 14-year Andy Reid era, Eagles owner Jeffrey Lurie gave a solid thumb's up to his general manager. In the process, he seemed to be throwing Andy Reid and Joe Banner under the bus for the disastrous drafts of 2010 and 2011. Can you say Danny Watkins and Jaiquan Jarrett? Lurie said Roseman only got full control in time for this past year's draft, and pointed to solid selections such as Mychal Kendricks and Fletcher Cox as proof of Roseman's acumen.

The triumvirate of Roseman, Lurie and Eagles President Don Smolenski will now go about the task of interviewing a slew of head coaching candidates. It only seems like everyone this side of Pope Benedict is on the short list, including what seems like an endless choice of NFL assistants and college head coaches.

Here's one completely unsolicited opinion (as it usually is). I want Penn State head coach Bill O'Brien. Yes, I know this will come as anathema to fans in Happy Valley who are still smarting from the whole Jerry Sandusky saga that paved the way for the ouster of the legendary Joe Paterno. The job O'Brien did in keeping the Nittany Lion program from coming apart at the seams and then posting an 8-4 record should be considered by the pontiff as miracle material.

But that's not why I like O'Brien. I have another reason. His name is Mike McGloin. For three years, he struggled mightily as quarterback of the Nittany Lions, seemingly the latest in a long line of lackluster signal callers at Linebacker U. Then O'Brien arrived, fresh off his stint as Bill Belichick's offensive guru with the Patriots, the man who took late draft pick Tom Brady and turned him into a superstar. Suddenly McGloin looks like a real quarterback. Who knew? Apparently O'Brien did. I'm thihnking he does the same with Nick Foles.

There is a down side to trying to pry O'Brien out of Happy Valley. Actually there are two of them. First, there will be a certain amount of backlash if the Eagles push to get O'Brien after just one year at Penn State. It's the last thing that program needs, with the reverberations from all that Sandusky nastiness still fresh in everyone's minds. Lurie should ignore all those concerns should be believe O'Brien is the right guy.

More importantly, O'Brien will come with a hefty price tag. It will clost $9 million to buy O'Brien out of his deal at Penn State.

You know my opinion. What's yours? Join us tonight as our Wednesday night 'Live From the Newsroom' Internet live-stream show tackles the Eagles, the Andy Reid Era and what is to come now.

I'll be joined by Eagles beat writer Bob Grotz, lead sports columnist Jack McCaffery and some special guests. If you have a question concerning the Eagles you'd like the panel to address, email it to me at editor@delcotimes.com. Then join us at 7 on DelcoTimes.com and log into our live chat to take part in the discussion.

The Andy Reid Era is over after 14 years. It's now time for Jeff Lurie to do a better job in selecting a new head coach. What happens now? We'll talk about it tonight at 7. Join the conversation.

Time's yours, Eagles fans.

The Daily Numbers: 257-167 vote in House to approve the deal to avert the fiscal cliff and send the bill to President Obama.

85 Republicans, including Rep. Pat Meehan, R-7, of Drexel Hill, who voted for the deal.

0 members of the Pa. U.S. House delegation who voted against the deal.

6 House Republicans in the Philadelphia region who voted for the deal.

89-8 vote in favor in the Senate, including both Pa. Senators Toomey and Casey.

400,000 dollars, threshold for higher taxes included in fiscal cliff bill. Don't think I have to worry about that anytime soon.

39.6 percent tax rate for income above $400,000 for individuals, $450,000 for couples. That's up from 35 percent.

40 percent top rate on the estate tax. That's up from 35 percent.

1 year extension in unemployment benefits for long-term unemployed.

27 percent cut in Medicare reimbursements for doctors.

2 percent cut in payroll tax will expire, going back up to 6.2 percent rate for all workers.